The timer is not meant to be an accurate to the ms method of time keeping. Any limit is likely imposed by the way the Windows system works, because mIRC tells Windows to inform mIRC of what "1ms later" means. You can, however, try the -h switch, which might improve the results.

Code:
Note: The -h switch creates a high-resolution multimedia 
timer. This type of timer should only be used in critical 
timer situations since it uses system resources heavily.